6/21/2023 0 Comments 10 shares of dominos stock![]() and Domino's Pizza wasn't one of them! That's right - they think these 10 stocks are even better buys.As an investor, one way to earn money from stocks is through dividends. They just revealed what they believe are the ten best stocks for investors to buy right now. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market.* ![]() When our award-winning analyst team has a stock tip, it can pay to listen. While the stock certainly isn't a bargain, buying a small position to hold for the long term might be a decent idea now that shares have sold off a bit.ġ0 stocks we like better than Domino's Pizza Given that it's only paying out about a third of its earnings in dividends today, more dividend growth is likely in the coming years.Ĭonsidering all of this alongside the stock's reasonable valuation (it trades at a price-to-earnings ratio of 24 at the time of this writing), Domino's shares actually look reasonably attractive at this level. At current share prices, that gives the restaurant stock a 1.6% yield. The company said it's increasing its quarterly payout by 10% to $1.21. Then there's Domino's rapidly growing dividend. "e hope that as we move into '23, this continues to accelerate," said Chief Financial Officer Sandeep Reddy on the fourth-quarter earnings callabout Domino's earnings per share growth. After reporting a decline in earnings per share in Q3, this profitability metric increased 4.2% year over year in the fourth quarter. It's also worth noting that the company's recent adjustments in pricing are leading to an inflection in profitability. Domino's forecast highlights the potential resilience of its business during tough times. Indeed, that sales growth range is higher than the company's 2022 growth rate of 3.9%. In addition, there are some positive things about Domino's business worth highlighting.įirst, while management expects lower levels of growth than it was previously anticipating, guidance for 4% to 8% retail sales growth per year over the next two to three years is still impressive considering the macroeconomic environment. But that lower stock price may be enough to discount the company's gloomier outlook. ![]() With such disappointing news, it's easy to see why the stock sold off on Thursday. It also lowered its forecast for unit growth for the same period to a range of 5% to 7% growth, down from a previous guidance range of 6% to 8%. ![]() delivery business, Domino's lowered its expectations for 6% to 10% global retail sales growth (adjusted for foreign currency impacts) over the next two to three years to a range of 4% to 8%. Citing the weak macroeconomic environment, which is negatively impacting its U.S. More troubling was the company's outlook. stores grew by just 0.9%, down from 2% growth last quarter. ![]() A key factor underlying the quarter's weakness was a substantial slowdown in U.S. Not only was this a substantial slowdown from 7.1% growth in the prior quarter, it was meaningfully below analysts' average forecast for revenue of $1.44 billion. Domino's Pizza, which makes money from a combination of company-owned stores, franchise royalties and fees, and sales of pizza supplies, saw its revenue increase by 3.6% year over year to $1.39 billion in the fourth quarter. ![]()
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